July 15, 2025

Guardians of Art: Managing Risks in Fine Art Collections

Managing the risk associated with collecting, conserving, and preserving art for future generations.

Summary

Art collections are diverse and as unique as collectors themselves.
The formation of art collections can stem from inheritance, scholarly interest, or investment motives, each presenting specific risks that may require tailored insurance solutions and conservation strategies to protect the artworks.
Understanding the location and condition of art collections is critical for risk mitigation. Factors such as the building's structural integrity, security systems, and environmental controls (including temperature, humidity, and lighting) play a significant role in preservation.
Engaging art conservation experts could be essential for assessing the condition of artworks, reviewing storage environments, proposing treatments for damaged pieces, and ensuring the longevity and cultural heritage of the collections.

Art collectors’ interests, backgrounds, education, knowledge, and experiences are as diverse and unique as their treasured works. Take, for example, “American in Paris,” where Gertrude Stein amassed a collection of “revolutionary and radical art,” featuring artworks by Renoir, Delacroix, Degas, Manet, Matisse, and Picasso. Compare that with the collection of J. Paul Getty, which focused on Greek and Roman sculpture, as well as Renaissance masters. Both collections are impressive, but also wildly different.

Adding to the complexity, from a risk standpoint, is the way a collection forms. One art collection may be inherited from a family member who was an artist, while another may result from a scholar's interest in a particular period of history. Yet another may be accumulated as an investment in property or for philanthropic donation.

Risks to fine art

Each collection, whether carefully curated or inherited, focused on modern art or Renaissance art, on paper or on canvas, or managed professionally or personally, is precious to the collector. From the standpoint of a fine art risk manager, each requires custom solutions to mitigate common risks. Suppose you are responsible for insuring an art collection, whether personally or on behalf of your client. In that case, it’s essential to understand the risks and how to properly care for the collection.

Location

When it comes to mitigating risks to collections, one of the first considerations is the location of the collection itself. Collections may be stored on the insured premises or out of the insured's care (in art storage or with art dealers, auction houses, or museums).

Collections often move as part of financial transactions or art exhibitions, transitioning from one venue to another and, at times, from one insurance policy to another. The risks for each scenario are nuanced and unique.

It is important to consider the protection afforded at the site of the artwork. The location where the artwork is situated serves as a protective envelope for the artwork itself. For instance, if a building has a security system but a leaky roof, it isn’t a safe envelope for the collection.

Materials

The materials used to construct the art within the collection can be either stable or unstable. Additionally, some artwork, such as photography or works on paper that use pastel, can be affected by sunlight. Understanding how the materials that comprise an art collection will interact with their environment—and whether they can degrade over time—is crucial for protecting the longevity of the works. Art conservators can assist in the stability and protection of artwork.

We recommend a careful assessment of the location where art collections are stored, as well as the materials used, such as glazing and UV film, and verifying the integrity of the hanging mechanisms. The more complex the art collection, the greater the need for consideration of factors related to protection. Factors related to gradual deterioration are particularly important to note and manage, as they are often excluded from fine art insurance policies.

Conserving art collections

Art conservation professionals are responsible for preserving the physical collection and, by extension, the important cultural heritage of the works for future generations to enjoy. Engaging with an art conservation professional is beneficial for:

Assessing the current state of an artwork: They can produce a detailed condition report.

Reviewing the envelope holding the artwork: They can review the location, as well as the crate or packing mechanism where the artwork is stored.

Proposing treatment for damaged artworks: They can review to determine if an artwork can be cleaned or conserved if damaged.

Conservation professionals specialize in the following areas:

1. Paintings (oil, acrylic, mixed media, and their supports, coatings, and varnishes)

2. Objects (decorative elements, sculpture)

3. Works on paper (books, art on paper, manuscripts, library materials)

4. Archaeology (objects, structures, sites)

5. Architecture (immovable properties such as buildings, monuments, and outdoor sculptures)

6. Electronic media and photographic materials (negatives and objects made from composite materials like paper, prints, and albums)

7. Textiles (carpets, tapestries, clothing, upholstered furniture, fiber art, etc.)

8. Wooden artifacts (ethnographic carvings, furniture, upholstery, frames, and veneer, marquetry, etc.)

You should ensure you are engaging with the correct art conservation professional to review your specific collection.

Benefits of working with us

Our Fine Art Practice often takes a collaborative approach to assisting our clients with risk management and developing customized insurance programs.

If you need help figuring out the right contacts, processes, and putting together a comprehensive risk review for your collections or the collections you manage, our Fine Arts Practice may assist you. We often have established relationships and vetted contacts, and we may help you ensure your treasured works are protected for the future.

Request a complimentary personal risk management review today for a customized art insurance solution.

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